Suppose at the current level of labor used, MRP = $100 and MFC = $50. To maximize profits, the firm should

The level of the capital—labor ratio that maximizes consumption per worker in the steady state is known as the

A) Solow residual capital—labor ratio. B) Golden Rule capital—labor ratio. C) q theory capital—labor ratio. D) dynamically efficient capital—labor ratio.

While cyclical majorities can lead to unstable outcomes, they generally do not because of _____

a. rational ignorance b. double-peaked preferences c. political institutions d. majority rule